Service outsourcing under co-opetition and information asymmetry

Xu, Xiaoyan; Ji, Yanan; Bian, Yiwen; Sun, Yanhong

doi:10.1057/s41274-016-0111-5

Cited by 11 publications

(7 citation statements)

References 20 publications

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“…As production and service outsourcing becomes an increasingly common phenomenon in the industry, many companies are changing conventional after‐sales service strategies (Y.J. Chen and Chen, ; Dong et al., ; Wu, ; Xu et al., ). Opp et al.…”

Section: Literature Reviewmentioning

confidence: 99%

Manufacturer warranty service outsourcing strategies in a dual‐channel supply chain

Zhang

et al. 2020

Int Trans Operational Res

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Warranty management for durable products has received increasing attention in recent years. In addition to conventionally keeping warranty in‐house, more manufacturers choose to outsource warranty service to agents. This paper explores outsourcing strategies for manufacturer warranty services in a dual‐channel supply chain by which the demand‐enhancing service can be undertaken by different supply chain parties. We show the results of three alternative outsourcing strategies for manufacturers whereby (a) the retailer undertakes the service, (b) a third party undertakes the service, and (c) both the retailer and a third party undertake the service simultaneously. According to Stackelberg game theory, we build a two‐echelon supply chain model and discuss the corresponding expressions for supply chain members' equilibrium decisions. Additionally, we compare the profits of each supply chain member and derive interesting managerial insights. When the base market size is relatively large, Scenario R helps the manufacturer and the retailer reach a “win‐win” situation.

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Section: Literature Reviewmentioning

confidence: 99%

Manufacturer warranty service outsourcing strategies in a dual‐channel supply chain

Zhang

et al. 2020

Int Trans Operational Res

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“…With regard to studies about the information asymmetry in the supply chain, most focus on the cost structure [5,8,17] and demand information [15,38]. Supply contracts including quantity discount contract [6], wholesale price contract [30] and buyback contract [21], under these information asymmetric situations have been studied extensively to help achieve supply chain coordination [37]. Xie et al [35] studied the decisions of the wholesale price and service level in a service-oriented manufacturing supply chain under asymmetric demand information, and designed three types of contracts based on wholesale price contract and franchise fee contract to enhance the supply chain performance.…”

Section: Supply Chain Coordination Under Information Asymmetrymentioning

confidence: 99%

Coordination of elderly healthcare service supply chain with information asymmetry: Designs of option contracts under different demand distribution statuses

Zhao

2020

RAIRO-Oper. Res.

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This paper studies the issue of demand information asymmetry in an elderly healthcare service (EHS) system represented by a two-echelon elderly healthcare service supply chain (EHSSC) comprising an elderly service integrator (ESI) and a service provider (ESP). The goal of the ESI is to decide on how much service capacity is required for placing orders to the ESP, who directly serves the customers. Considering discrete and continuous demand distribution statuses, a centralised model with symmetric demand information and decentralised models with asymmetric demand information are developed to analyse the optimal ordering decisions and discuss the influence of information asymmetry. Furthermore, option contracts are applied to help coordinate the supply chain under asymmetric demand information based on different demand distribution statuses. Optimal option contract menus are designed for the ESP to promote the information sharing. Results show that the option contract can coordinate the EHSSC with asymmetric demand information under both discrete and continuous demand distribution statuses. The exercise price will be higher under lower demand information than that under higher demand information and the transfer payment will be less under lower demand information than that under higher demand information. Moreover, although the ESI has demand information superiority and can make use of opportunistic behaviour to maximise its own profit, the ESP as the leader can design the option contract to incentive the ESI to achieve true information sharing, and even obtain nearly all of the channel profit.

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“…Pun [27] studied two OEMs that compete in a downstream market but need to buy raw materials from each other and found that cooperating with competitors can be harmful. Xu et al [28] studied the coopetition in the service outsourcing supply chain, and set the service commission contract as two parts: fixed and unit commission. Wang et al [29] analyzed the coopetition problems of OEM and manufacturer from the perspective of information asymmetry.…”

Section: Literature Reviewmentioning

confidence: 99%

Outsourcing Strategy With Patent Licensing in an Electronic Product Supply Chain

2020

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An electronic product like a smartphone might involve hundreds of thousands of patents. The risks caused by infringement make it necessary for enterprises to consider patent licensing when outsourcing production activities in the electronics industry. This paper studies the outsourcing strategy considering patent licensing in an electronic product supply chain composed of a patent-holding firm, an original equipment manufacturer (OEM) and a contract manufacturer (CM). In addition to outsourcing manufacturing to the CM, OEM also considers outsourcing the patent license obtaining as well. We construct two outsourcing modes, called Turnkey and Consignment. No matter under which outsourcing mode, the patent-holding firm will charge unit royalty and a fixed fee paid in a lump sum. The results show that the OEM tends to choose Consignment without considering fixed fees, while the CM prefers Turnkey. When considering fixed fees, the patent-holding firm could align their preferences by coordinating fixed fees borne by OEM and CM. What's more, considering the environmental pollution caused by the production of electronic products, both strategies may lead to higher social welfare than the other strategy. INDEX TERMS OEM, patent licensing, outsourcing, coopetition supply chain.

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Service outsourcing under co-opetition and information asymmetry

Cited by 11 publications

References 20 publications

Manufacturer warranty service outsourcing strategies in a dual‐channel supply chain

Manufacturer warranty service outsourcing strategies in a dual‐channel supply chain

Coordination of elderly healthcare service supply chain with information asymmetry: Designs of option contracts under different demand distribution statuses

Outsourcing Strategy With Patent Licensing in an Electronic Product Supply Chain

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